Note C: Leases
The company leases five separate warehouse facilities in both Newark, California
and Carlisle, Pennsylvania, with operating leases expiring in various years
through 2003, and renewal options of up to three years each. These five
leased facilities are being used primarily to store packaway merchandise.
In addition, the company leases its store sites, selected computer and related
equipment, and certain distribution center equipment under operating leases
with original, non-cancelable terms that in general range from three to
fifteen years, expiring through 2015. Store leases typically contain provisions
for three to four renewal options of five years each.
Most store leases also provide for minimum annual rentals, with provisions
for additional rent based on percentage of sales and for payment of certain
expenses.
The aggregate future minimum annual lease payments under leases in effect
at year-end 2000 are as follows:
| ($000) |
Amounts
|
 |
| 2001 |
$
|
136,079
|
| 2002 |
|
127,213
|
| 2003 |
|
111,394
|
| 2004 |
|
97,741
|
| 2005 |
|
84,775
|
| Later years |
|
317,240
|
|
| Total |
$
|
874,442
|
|
Total rent expense for all operating leases is as follows:
| ($000) |
2000
|
1999
|
1998
|
|
| |
|
|
|
| Minimum rentals |
$ 129,645
|
$ 118,089
|
$ 106,696
|
|
|
